Average selling prices of DMF and methylamine were RMB9,344 per tonne (+98% y-o-y) and RMB9,272 per tonne (+38% y-o-y) respectively, while sales volume grew 65% and 32% y-o-y respectively.
SEE:Broker's Digest: SIA, Sheng Siong, Sunpower, AusGroup, Jiutian Chemical Group
The better sales volume and selling prices follow China’s continued recovery post-Covid, which the group says has resulted in a surge in demand from downstream users, who in turn are experiencing strong growth in both local and export markets for their products.
Gross profit margin spiked from 7% in the 1QFY2020 to 32% in the 1QFY2021, which the group also attributes to the better prices.
In addition, capacity utilisation at its DMF and methylamine plants have increased to 69% and 89% respectively.
Shares in Jiutian Chemical Group closed 0.2 cents or 1.96% lower at 10 cents.
